Its favourite is DBS because the bank continues to deliver “sector-leading ROE, and the quantum of excess capital (stock and flow) as well as management’s willingness to pay that out is a multi-year edge. Hence, we expect dividend yield and cost of equity compression for DBS to drive a re-rating over the course of the year.”
In a report dated Jan 9, JP Morgan continues to prefer DBS Group Holdings over Oversea-Chinese Banking Corp and United Overseas Bank. Interestingly, the report says it prefers UOB to OCBC.
“Our pecking order in the sector is DBS > UOB > OCBC into 4Q2025 results, post our discussions with banks today,” JP Morgan says.
